KPMG Sample Verbal Questions

DIRECTIONS for questions 1-5: Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.
If proof were needed that the organized sector of the Indian economy is globalized, look no further than the reaction of firms to the economic slowdown. What began as a knee-jerk reaction of Jet Airways, which issued marching orders to 800 employees and then retracted following an adverse reaction, has now morphed into a strategic plan by companies to keep their heads above the rising waters. This strategy is predicated on the need to cut costs and protect profit margins a s far as possible rather than look to increasing revenue in what is turning out to be a slowing market. Auto majors such as Tata Motors, Ashok Leyland and Mahindra and Mahindra have begun to cut back production and reduce man-hours at their plants across India in a bid to prevent inventory pile-up and tailor output to falling demand. It will not be long before auto component vendors follow suit, followed by firms across the product spectrum. Organized industry is learning to cope with the downside of a business cycle that first manifested itself last year in the wake of rising raw material and energy prices, and in the lagged effects of high interest rates on consumer demand. In the last quarter of 2007-08, industry and manufacturing growth rates both slipped to around 5 per cent against 8.6 per cent and 9.6 per cent respectively in the previous quarter, which performance itself represented a decline from the high of 10 and 12 per cent in 2006-07. Growth had been falling, therefore, all of 2007-08 with the decline accelerating since January this year. Fiscal 2007-08 closed with a real GDP growth of 9 per cent mainly due to a double-digit growth in services such as real estate, transport, hotel services and construction. With high albeit falling interest rates and, worse, a risk aversion among lenders impacting these sectors as much as they had manufacturing earlier, the overall growth momentum may slip even more than officially estimated. Against this backdrop, the best bet for policymakers and producers would be to turn the downturn into an opportunity for fresh strategizing. Manufacturing firms have begun the task of cutting costs in right earnest. The real estate sector is supposedly asking for relief and so will the shipping and transport sectors. The Government has to exercise discretion the way it did with the airline industry so as to encourage internal overhauling. The Government will inevitably have to boost confidence and private investments at some future date through counter-cyclical spending. That future should start right away.
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  1. Which of the following points is implied in this passage?
    1. There is proof that India's organized sector may be affecting the global economy
    2.  The economic slowdown is a result of knee-jerk reactions of companies such as Jet Airways
    3.  Organized sector of the Indian economy is definitely globalized
    4. None of these
    Answer:  Option C.
    The first line of the passage makes this statement and goes on to prove it through various examples, facts and figures.
  2. From which of the following factors does the slowdown in business become evident?
    1. Raw material and energy prices started rising last year
    2. In the Jan - March 2008 quarter both the industry and manufacturing growth rates dropped to about 5%
    3.  In the fiscal year 2007 - 2008 consumer demand started to lag due to the high interest rates
    4. All these.
    Answer: Option  D.
    Read the lines, “Organized industry is… hotel services and construction.”.
  3. Given that the government will inevitably have to play a proactive role in boosting confidence and private investments in future.
    1. the corrective measures should begin right away
    2. auto companies such as Tata Motors, Ashok Leyland and Mahindra & Mahindra should cooperate with the government
    3. the government should seek aid from World Bank
    4. organized industry should be encouraged to increase revenue
    Answer: Option  D.
    The last line of the passage is the answer. “That future should start right away.”..
  4. Which of the following is not implied in this passage?
    1. The economic slowdown should be perceived as an opportunity for strategizing by policy makers and producers
    2. Growth rates in industry and manufacturing had been falling throughout the year 2007 - 08
    3. Jet Airways had a clear strategy behind sacking of 800 of its employees
    4. Real estate and shipping and transport sectors are looking to the government for relief measures
    Answer: Option  C.
    The choice C is not implied in the passage. 
    Rest all are talked about in the passage.
  5. Which of the following captions would be the most apt for this passage?
    1. Government’s role in boosting the economy
    2. Globalization of Indian economy
    3. Cost-cutting is the cure for economic ills
    4. Indian industry’s impact on the global economy
    Answer: Option  A.
    A seems to be the most appropriate of the choices available. Globalization of Indian economy is not being talked about. So choice B is rejected. Choice C talks about Cost cutting which is just one of the issues highlighted hence cannot form the title of the passage. Choice D is rejected because the passage does not talk about Indian industries impact on the global economy.
    DIRECTIONS for questions 6-7:Arrange the sentences marked A, B, C, D and E form a logical paragraph.
    1. The precision with which the crucial operation was executed has unequivocally demonstrated ISRO’s capability to take up the more complex deep space missions as distinct from numerous near-earth missions in the past
    2. The achievement has put India in the exclusive club of space-faring nations that have ventured beyond the sphere of the earth’s gravitational influence
    3. That ISRO brought this off in its first attempt is all the more commendable
    4. The successful critical man oeuvre on November 8 that put Chandrayaan-I in an orbit around the moon marked the completion of the most important phase of the Indian lunar mission
    5. The rest of the mission involves only standard orbit manoeuvres, the likes of which the Indian Space Research Organization (ISRO) is quite used to, and the performance of the on-board scientific instruments during the mission life of two years.
    1. BCADE
    2. DEABC
    3. CDABE
    4. EDCBA
    Answer:  Option B.
    D) opens the sequence by introducing the completion of the last phase of the mission, Chandrayan. E follows closely talking about the rest of the mission. A praises the precision with which the mission was completed and B talks about the achievement adding to India’s pride. C completes the sequence with ‘…ISRO….this (ventured beyond ……influence. 
    1. To the joy of tens of millions of cricket fans, it established itself as the only team in this era to consistently challenge― and not infrequently master ― Australia both at home and away.
    2. In fact, since the turn of the millennium India has transformed itself in to an all-round cricketing power capable of winning on varying conditions anywhere.
    3. Over the last decade, Australia and India have set up Test cricket’s most absorbing rivalry.
    4. Every champion needs a counterpoint: legacies, defined referentially, drawn from the dynamics between word-beater and contender.
    5. India, thanks to its natural style of calm, aggressive cricket, its distinctive ability to play at the level of the opposition, and the confluence of some of the finest cricketers in the contemporary game, fulfilled this role of contender.
    1. EDCAB
    2. DCABE
    3. CDEBA
    4. ABCDE
    Answer:  Option D.
    The paragraph talks about Kumble, his achievements and his retirement. The sentence E is clearly the last sentence here. Hence we have only two options: option B or option D. Now the sentences B and C are related as C gives the reason why Kumble was under-rated. D further continues with the point in C. Hence the option D, ABCDE is the correct answer.
    DIRECTIONS for the question 8-9: Select the pair of words, which exhibits the same relationship between each other as the given capitalized pair of words
  6. SIMMER : BOIL : :?
    1. glide : drift
    2. drizzle : downpour
    3. gambol : play
    4. stagnate : flow
    Answer: Option  B.
    Analogy of degree-Higher to lower. Simmer is a higher intensity word than boil. Similarly drizzle and downpour are similar meaning words but with varying intensity.
  7. SEETHE : ANGER : :?
    1. chortle : distress
    2.  snarl : confusion
    3. fidget : uneasiness
    4.  waddle : embarrassment
    Answer: Option C
    Analogy of degree-Higher to lower. Seethe is a more intense form of anger just as fidget of uneasiness.
    DIRECTIONS for the question 10:Each of these questions has a text portion followed by four alternative summaries. Choose the option that best captures the essence of the text.
  8. Some decisions will be fairly obvious "no brainers". Your bank account is low, but you have a two-week vacation coming up and you want to get away to some place warm to relax with your family. Will you accept your in-laws' offer of free use of their Florida beachfront condo? Sure. You like your employer and feel ready to move forward in your career. Will you step in for your boss for three weeks while she attends a professional development course? Of course.
    1. Some decisions are obvious under certain circumstances. You may, for example, readily accept a relative's offer of free holiday accommodation or step in for your boss when she is away.
    2. Easy decisions are called "no-brainers" because they do not require any cerebral activity Examples such as accepting free holiday accommodation abound in our lives.
    3. Some decisions are no-brainers. You need not think when making them. Examples are condo offers from in-laws and job offers from bosses when your bank account is low or boss is away
    4. Accepting an offer from in-laws when you are short on funds and want a holiday is a no-brainer. Another no-brainer is taking the boss's job when she is away
    Answer: Option C.
    The passage talks about certain decisions being so obvious and explicit that one doesn’t have to think twice before making them. The author reinforces this through an example. All options except 3 focus attention on the example and mislead the information generated.
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